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Mergers & Acquisitions, Business Valuations, Profit Improvement, Refinancing

Phone: 484-645-4866

Deal Structure

Price is critical but it is not the only factor you need to consider. It is important to look at all of the terms of the deal; some can have significant effects on the overall value of the deal.

The terms and conditions of the deal often have a big effect on the transaction, especially if not structured properly. Mistakes in the deal structure can significantly erode your hard-fought negotiated value. When evaluating the consideration involved in finalizing the deal, it is important to consider the tax implications of various options such as accepting assets from the business or stock payments.

What are the top factors that should be addressed in the agreement?

    Deal Structure advice for buying or selling a business
  • Names of seller, buyer, and business
  • Background information
  • Assets being sold
  • Purchase price
  • Allocation of Assets
  • List of inventory included
  • The Terms of the Agreement
  • Payment terms
  • Covenant Not to Compete
  • Any representations and warranties of the seller and buyer
  • Determination of the access to any business information
  • Determination as to the running of the business prior to closing
  • Contingencies
  • Fees, including accountant, attorney and brokers fees
  • Date of closing

As an independent consultant, we work with other professionals like accountants and attorneys in structuring the deal that brings the best overall value for your transaction.

Buy Sell Contract Deal Structure

Most popular options for structuring the Buy/Sell Transaction

  • Cash Sales
  • Installment Sales
  • Asset Transactions
  • Stock Transactions
  • Leveraged Buyouts
  • Earn-Outs
  • Stock Exchanges

Contact Fedirka Associates for assistance with structuring the terms of your buy/sell business agreement. Simply give us a call at 484-645-4866.